While Bob focuses on the ERP in traditional environment, Paul’s article concentrates on the ERP system in the Internet age. ERP systems designed before the emergence of e-business as a significant force in the market lack the ability to support the needs of Internet-based communications and commerce. Paul also illustrated, in his case - process manufacturing industry, that roughly 70 percent of the industry is tied to legacy ERP systems that cannot connect to the Internet. This is a serious disadvantage that will be impossible to ignore as the online share of overall sales begins to inevitably rise. (Paul 2001)
Richard’s argument adds considerable weight to Paul’s proposition. The major implication of the computer system is that the whole idea of "enterprise" and "value system" has changed: ERP system users are no longer a few internal technical specialists, but rather everyone from an e-commerce shopper to a supplier on another continent. (Richard 1999)
Besides the functions of plumbing and wiring an information system for all areas of the enterprise, ERP is taking that core competency within an enterprise and expanding it out to the rest of the supply chain. The ubiquitous availability of the Internet, however, has forced the issue of integrating the front office. (Richard 1999)
"In the Internet age, ERP is the bricks behind the clicks," says Mary Haigis, vice president of marketing for American Software, Inc. (MMH 2000)
Supply chain management (SCM) enables the coordinated management of material and information flows throughout the chain from sources to customers. Sharing information is what transforms an ERP system into the backbone of a supply chain. As a result, many providers argue that the term ERP is becoming outdated.
However, Regardless of the model, transactions are still at the heart of any electronic exchange. That's why ERP systems still have an important role in the new business environment. The order and inventory information that flows across an exchange is pulled together by an ERP system. (MMH 2000)
ERP system within supply chain domain
Nearly all contributors defined their own ERP system within the supply chain domain:
Gartner Group calls it ERP II, while AMR Research Inc. prefers the term enterprise commerce management (ECM). (Doris 2001)
One analyst has labelled such systems XRP, for extended resource planning. (Richard 1999)
Instead of ERP think EAP, or enterprise application provider. (MMH 2000)
…The next generation … ERP system, (Paul 2001)
The contradict definitions of next generation ERP should not be regarded to indicate any real dissatisfaction among the contributors. All the concepts take the same six categories of role, domain, function, process, architecture and data, and utilize them for supply chain collaboration.
The features of next generation ERP system (represented as ERPII) are:
- The domain of ERP was manufacturing and distribution; with ERP II, all industry sectors are included. ERP looked internal, often hidden; ERPII takes the inside information and looks outward to the supply chain – most often via the web. (Doris 2001)
- The focus of ERP is cost saving; the ERPII focus is driving revenue. By getting information to suppliers, more and better customers can be serviced, thus increasing revenue. (Doris 2001)
- ERPII has predictive capabilities. Also it gives instant visibility to information. ERPII with business intelligence allows a user to monitor key performance indicators that are important to their job, and to be notified when something changes. (MMH 2000)
- With the help of Internet, a service provider could maintain the system and hardware, while users access from a Web browser on a desktop PC. ERPII provides simple-to-understand access. (Richard 1999)
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The implementation of ERPII requires integrating with disparate systems across the supply chain or even globe. It also involves integration with a new set of hardware components as well. For example, as Kewill's Petersen expected, “personal digital assistants, portable PC's, and other wireless devices”. (MMH 2000)
- The implementation of ERP needs reengineering, which ERPII needs customer-supplier alliances. (Richard 1999)
The future of ERP
As virtually every article of this collection demonstrates, the only fit for ERP is the supply chain management. ERP is no longer thought of as the be-all-and-end-all solution, but instead as a node in the overall network of the virtual enterprise, says Genovese. (Doris 2001)
In the real world, all the major ERP vendors have announced or rolled out their "Web-centric" or "e-collaboration" products, while smaller specialty suppliers are already active in this new space. (Richard, Bob, MMH) Paul also illustrated the new ERP solution, which fully supports the supply chain, from procurement through sales without replacing the old ERP system. (Paul 2001)
Despite the questions and the slowdown of the deployment, ERP is far from dead. In fact, it (the next generation of ERP) will emerge as the most important IT platform for the next decade. “Projections are for growth from about $14 billion this year to more than $52 billion annually in 2002 under estimation”. (Richard 1999)
Reference:
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Doris Kilbane, Nuts and Bolts: Enterprise resource planning, , Supply Chain Technology News, July 2001
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Paul Satre, Putting a fresh face on ERP, Midrange Enterprise, March 2001
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Richard W. Oliver, ERP is Dead! Long Live ERP! Management Review, Nov99, Vol. 88 Issue 10, p12
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ERP for the Internet age, Modern Materials Handling, Aug2000, Vol. 55 Issue 9, p43
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Bob Rosenbaum, A greatly exaggerated death for ERP Supply Chain Technology News, December 2000
